NEW DELHI : After achieving success in domestic mobile manufacturing, the government is working on a strategy for an export-led growth for smartphones and electronics, Communications and IT Minister Shri Ashwini Vaishnaw was quoted in a recent interview.
“Today India has become part of the global value chain (GVC) of mobile phones and electronics. Now we are looking at a strategy of export-led growth rather than simply import substitution and looking at our needs,” Vaishnaw said. “A great opportunity has come our way and we have reached a level where we can rapidly grow our exports,” he added.
For an export-led growth in mobile phones and electronics, the ministry of electronics and IT (Meity) will work closely with the ministry of finance for making movement of goods across borders very smooth. Vaishnaw said this is needed as the nature of GVC is such that goods keep crossing borders multiple times before the final product is made. “Speed is important in this process,” he added. According to him, what all needs to be looked at to make multiple transactions across borders more smooth are import duties, processes, automation, and warehousing.
The Minister’s observations are quite timely and relevant. If one looks at Vietnam, its domestic market for mobile phones and electronics in value terms is worth $2 billion but exports around $40 billion. In the case of India, the domestic market is worth $33 billion but exports as of FY23 was $11 billion. So there’s immense scope to grow.
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